April 23, 2001

IURC ACTS ON CINCAP
VII†

In Cause No.
41569, the majority of the Commissioners deemed that the increase in generating
capacity the facilities bring to Indiana is necessary to maintain reliable
electric service.† In addition, a
significant amount of the power generated is guaranteed to serve
Hoosiers.† Wabash Valley Power
Association has signed a twenty-year contract to purchase 50 MW of capacity and
energy generated from the plant.

The efforts of
the Concerned Citizens of Henry County did impact this decision.† The issues they raised helped shape the
final order. The Commission also notes that the Henry County Commissioners
support the approval of CinCap VII with the conditions established in this
order.

Conditions
include:

∑Operate
facility solely with natural gas.

∑Work with
Department of Natural Resources to monitor ground water.

∑Correct and
pay for any well problems to nearby landowners that are determined by the DNR
to be caused by the facility.

∑Landscape area
so visual appearance is similar to other non-residential operations in the
area.

∑Restore land
to a conforming use if the plant is abandoned.

∑Commitment to
an acoustic design goal of less than 55 dBA at the nearest residential
dwelling.

(Audiologists at the IU Medical Center say that is about the level of a
normal conversation.)

∑Assist with
the training of the Cadiz volunteer fire department and Henry

County Local Emergency Planning Committee to ensure they are prepared to
respond to any emergencies at the plant.

∑CinCap may not
change the facilityís capacity or operation without the Commissionís
approval.†

∑There are
strict reporting requirements about the construction and operation of the
facility.

The facilities
will be located on a 33.5-acre site on the south side of Indiana 38, about a
mile west of Cadiz.† It is estimated
that the $67 million plants will be operational to serve the needs of Hoosiers
by June 2001.